Understanding Property Management Fees in Perth

Real estate can be very rewarding, but it also comes with a lot of work. For many landlords, hiring a professional property manager is one of the greatest methods to make sure their investment is secure, well-maintained and profitable.

But for people who are new to investing in property, understanding property management fees can be difficult. We at D Residential Group believe in being open and honest with our clients about what they are paying for. This guide tells you about the most common forms of fees in property management, so you can make smart, informed decisions.

What Property Management Fees Are

The cost of property management is the amount you pay to a professional to oversee the daily operations of your rental property. This can include marketing, tenant selection, rent collection, repairs and maintenance coordination, routine inspections and ensuring compliance with tenancy legislation.

The right property management company can save you time, lower your stress, safeguard the value of your home and help you get higher long-term returns by finding quality tenants and keeping up with maintenance.

Common Types of Fees for Property Management in Perth

Here is a list of the most common fees you may come across and what they usually cover.

1. Management Fee

This is the ongoing fee you pay for the daily management of your property. It usually includes collecting rent, communication with tenants, dealing with late payments, setting up inspections and taking care of general tenancy issues. A good management fee can reflect the service quality, how much expertise the property manager has and how much care your property will receive.

Perth property management fees tend to range from 8% to 9.5% of the rent, normally based on the gross weekly rental amount.

2. Leasing Fee

This cost is for when you need to find a new tenant for your property. It usually includes advertising the property, completing inspections, processing applicants, checking references, preparing lease agreements and handling bond lodgement.

A thorough leasing process will help you find quality tenants who will take care of your property and remain longer. The average leasing fee is usually two weeks’ rent plus GST, or 2.2 weeks’ rent.

3. Lease Renewal Fee

It's important to keep your investment property rented out at a fair, market-tested rate. As a lease comes to an end, your property manager should put a proactive retention plan into action. This means looking into current market conditions, working through pricing and terms with you and negotiating a new lease to keep quality tenants so your rental income isn’t disturbed.

In Perth, the fees for renewing a lease are usually between half and one week of rent + GST (approximately 0.55 to 1.1 weeks including GST). Leading agencies begin the renewal process roughly three months before the lease end date.

4. Marketing Costs for Your Rental Property

The best way to rent out a vacant property is through online advertising. Every listing should include professional photos and clear wording that highlights the home’s best features, benefits and location.

To secure a quality tenant as soon as possible, your property manager should post the listing on all the major real estate websites, compose an advertisement that grabs people's attention and ensure the use of professional photography.

5. Routine Inspection Fees

Regular and detailed inspections keep tiny problems from turning into big ones that can become costly down the line. Routine inspections keep an eye on the status of your property, confirm tenant safety, document how the home is being cared for and find out what needs to be fixed so you can plan ahead.

At D Residential Group, we include 360° imaging with every routine inspection to provide a clear, time-stamped visual record for complete transparency. The Residential Tenancies Act says that there can only be four routine inspections a year, and the fees for these inspections usually range from $88 to $125.

6. Property Condition Report

The property condition report at D Residential Group is a detailed record of how your property looked at the start of each tenancy. It sets the standard for the tenancy, backs up any bond claims towards the end and provides the most reliable evidence if there is a disagreement.

In accordance with the Residential Tenancies Act, the property condition report is completed in the prescribed format and provided to the tenant within seven days of the tenancy commencing. Prices usually range from $250 to $450, depending on the size of the property, the gardens and the level of furnishing.

We go above and beyond the legislative minimum by taking detailed notes and lots of photographs (and, where appropriate, 360° imagery) to make a clear, time-stamped record. We also handle the acknowledgement process at the start and the comparison at the end of the tenancy to encourage tenant agreement and minimise disagreements.

7. Final Inspection and Bond Disbursement

Once the tenant has vacated, a final inspection is conducted. This is an important stage in deciding whether or not their bond will be released. The purpose of this inspection is to compare it against the tenant’s in-going property condition report to see if any repairs or cleaning should be charged to the tenant's bond.

We take our time and do things right. We carefully compare the current condition of the property to the original property condition report. We look for standard wear and tear, required maintenance, any damage and things that need to be cleaned. This makes sure that both the landlord and the tenant get a fair and accurate result, while also keeping the property in great shape.

8. Tribunal Preparation Fee

Sometimes, evicting a tenant can be challenging, and you may have to take the case to the Tribunal. If this happens, your property manager will charge you a Tribunal preparation fee. This amount covers the time and work needed to put together all the paperwork for your case.

9. Administrative Fee

Some property managers in Perth charge a monthly administration fee to cover continuing expenditures. This could include costs for client portal and management software subscriptions, as well as administrative duties like photocopying, mailing and talking to owners, tenants and maintenance contractors on the phone or via text message on a regular basis.

10. Annual Tax Statement

An End of Financial Year tax statement, also known as an annual financial statement, provides a summary of all income and expenses for your property. Some property managers may also charge a small fee for the work that goes into making these reports.

11. Other Fees

There may be other fees or ancillary costs that may form part of property management fees, such as when certain incidents arise (i.e. insurance claim). It’s important to check if these are covered or add to your existing fees.

Why It's Important to Compare Property Management Services

We at D Residential Group think that the first step in picking the best property management company in Perth is to know exactly what you're paying for. Different agencies work in different ways. Some charge a flat rate for their services, while others charge based on how much work they do.

We’re transparent about what’s included in our service and ensure every aspect of your property’s care is handled by highly qualified tradespeople and experienced property managers. You’ll never have to worry about overpaying for poor workmanship or careless management that lets your investment decline.

We want to give you the best possible net return while also keeping your property in great shape. It may seem like a good idea to use a cheaper agency at first, but they often cut corners, which can lead to pricey repairs, costly vacancies and poor maintenance.

At D Residential Group, we invest in the right systems and technology to maximise your return and minimise risk. We also take pride in having a great, supportive team culture with low staff turnover. This means our clients have a consistent, enjoyable and profitable experience year after year.

Why D Residential Group is the Best Choice for Property Management in Perth

Understanding property management fees is about more than comparing costs. It's important to choose a team you can trust to take care of your property with professionalism, care and attention to detail.

At D Residential Group, we are a boutique Mount Lawley agency specialising 100% in property management. We combine industry expertise with a highly personalised approach, ensuring every property receives the focus it deserves.

We can help you get the most out of your investment, whether you own one rental or a whole portfolio. If you are ready to work with a proactive, experienced and transparent property management team, contact D Residential Group today.